3.11.2011

The Morning Leverage: HCA’s Pricing For Public Return? Winning

Now that’s a public re-entrance: HCA Holdings Inc. priced its initial public offering at $30 a share, the high end of the hospital operator’s projected range, raising a whopping $3.8 billion. Kohlberg Kravis Roberts & Co., Bain Capital LLC and BAML Capital Partners took HCA private for $33 billion in 2006, each putting in $1.5 billion of equity.

Energy-focused First Reserve Corp. makes a play in Italy, striking a deal to buy a 45% stake in power plant maker Ansaldo Energia. Conglomerate Finmeccanica is selling Ansaldo to holding company Ansaldo Electric Drives, held 45% by First Reserve and 55% by Finmeccanica. The total transaction value is roughly EUR1.2 billion ($1.66 billion).

Bain Capital LLC is poised to kick off formal fund raising for its sophomore vehicle focused on Asia. In what would be a first for the firm, Bain is thinking about offering investors a choice between lower management fees or lower carried interest.Also, Tavistock Group acquired the brands and seven locations of E-Brands Restaurants, which operates the Timpano Chophouse and Martini Bar, AquaKnox and Taqueria Canonita. The company filed for Chapter 11 bankruptcy protection in the summer. . . . Advent International Corp. returned commitments to its Japan-focused fund after the firm failed to close a deal for the vehicle in more than two years, a person familiar with the matter said. Buchang Group Co., which makes and distributes traditional Chinese medicines, has raised $120 million in a round of funding led by Morgan Stanley Private Equity Asia.